Alicorp (ALICORC1) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw strong growth in gross profit and EBITDA, mainly from Aquafeed and B2B units, despite headwinds in Consumer Goods Peru.

• New board of directors elected for 2025-2028, including experienced former executives and an independent director, reinforcing strategic discipline and long-term growth focus.

• Dividend of PEN 0.3769 per share approved, to be paid May 14, highlighting commitment to shareholder returns.

• Authorization granted to seek up to $500 million in capital markets financing for liability restructuring, aimed at strengthening financial position.

• Shareholders' equity declined by S/503 million to S/1,750 million, mainly due to share buybacks and scheduled dividends.

Financial highlights

• Consolidated gross profit reached PEN 784 million, up 32% year-over-year, mainly driven by Aquafeed business performance.

• Adjusted EBITDA was PEN 459 million, a 50% year-over-year increase, with margin improving by 2.5 percentage points to 15.8%.

• Net income reached S/184.6 million, up from S/79.8 million in Q1 2024, with EPS at S/0.266.

• Cash and cash equivalents grew to PEN 2,500 million, mainly from debt financing in Ecuador.

• Net cash from operating activities was S/263 million, down S/73 million year-over-year due to lower tax refunds and higher supplier payments.

Outlook and guidance

• Sales growth for 2025 expected at 10%-12%, with mid to high single-digit growth in adjusted EBITDA.

• CapEx for 2025 projected at $70 million.

• Leverage ratio anticipated to remain within 2-2.5 times net debt to adjusted EBITDA.

• Focus remains on optimizing product formulations, strengthening client relationships, and pursuing new opportunities, especially in Aquafeed and Ecuador.

• Continued discipline in working capital and cash flow management to maintain healthy leverage.